Abstract:Illegal logging is a pervasive problem throughout the world, affecting countries
that produce, export, and import wood and wood products. Illegal logging is
generally defined as the harvest, transport, purchase, or sale of timber in violation of
national laws. In some timber-producing countries in the developing world, illegal
logging represents over half of timber production and exports. The World Bank
estimates that illegal logging costs governments approximately $15 billion annually
in lost royalties. Illegal logging may stimulate corruption, collusion, and other crimes
within governments, and has been linked to the purchase of weapons in regional
conflicts in Africa. Illegal logging, however, benefits perpetrators by reducing the
cost of legal and regulatory compliance of timber harvesting, sometimes resulting in
higher profits. Illegal logging in protected areas can lead to degraded forest
ecosystems, loss of biodiversity, and indirectly to deforestation and the spread of
agrarian activity in some developing countries.

Several relevant multilateral and international agreements address illegal
logging and illegal timber trade. These range from voluntary agreements that, for
example, allow consumer countries to exchange data with producing countries, to
legally binding multilateral agreements that enable signatory governments to seize
illegal products and exercise financial and criminal penalties on those who possess
or transport illegally produced timber.

The United States is the world’s largest wood products consumer and one of the
top importers of tropical hardwoods. Some are concerned that U.S. demand for
tropical timber from countries in Latin America and Southeast Asia may be a driver
of illegal logging. Others assert that if there were no illegally logged wood in the
global market, the value of U.S. exports of timber could increase substantially. The
United States has no specific domestic laws that address all aspects of illegal logging.
Logging within the United States is addressed by several laws and regulations —
some federal, but many state — that depend on what species is logged, and where
and how it is done.

In 2003, the United States developed an initiative to help developing countries
stop illegal logging. This initiative aims to remove legal and institutional barriers to
combating illegal logging; promote technology to improve monitoring the legal trade
in logging; and create incentives to abolish illegal logging practices in rural
communities. The United States also addressed illegal logging in a free trade
agreement (FTA) with Peru. The agreement requires that the Peruvian government
enforce its international treaty obligations and increase monitoring and enforcement
of illegal logging in its country.

Illegal logging is addressed by Congress in the 2008 farm bill (P.L. 110-234).
A provision in the law amends the Lacey Act to include plants traded in violation of
foreign laws. This was primarily intended to deter imports of illegally obtained
timber from foreign countries.